Opinion Column

A quick primer on soaking the rich

The Oracle of Omaha came on the show yesterday and promoted his plan to impose a minimum 30 percent tax on millionaires and billionaires. Warren Buffett said such a tax was necessary because fully a quarter of the 400 richest Americans (who averaged $200 million in income) paid a tax rate of less than 15 percent - and six of those super-rich individuals paid nothing at all.

FOMJ (Friend-of-Morning-Joe) Steve Rattner has also called for similar increases in tax rates for the ultra-wealthy, with particular emphasis on the capital gains tax and dividends rate. As Steve noted in his New York Times oped, “We need at least $4 trillion of long-term debt reduction, with a substantial portion - on the order of $1.2 trillion — coming from new revenues.”

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Mr. Rattner advocates a top capital gains rate of 28 percent.

The point Rattner and Buffett are making - and the point we’ve been making on the show for months - is that simply raising the marginal tax rate on the wealthiest Americans from 35 percent to 39.6 percent will do little to bring in additional revenue from the richest Americans who draw most or all of their income from capital gains and dividends. These ultra-rich Americans will remain untouched by what is effectively a fantasy rate on “income” unrelated to capital gains or carried interest.

For these wealthy taxpayers, powerful accountants and tax lawyers always make sure their “income” is rarely subject to top marginal tax rates. But that’s not the case for small-business owners who make far less but are still subjected to the pain of tax hike plans passed under the guise of making the tax code more equitable. Because these taxpayers can’t afford the best accountants that money can buy, they bear the brunt of Washington’s feel-good fantasy tax on the ultra-rich.

If politicians really want to make millionaires and billionaires pay at a tax rate that most of us endure on April 15th, their moral pangs would be soothed more effectively by following Buffett’s minimum tax plan or focusing on raising the tax rates on capital gains and carried interest. As Mr. Buffett told me yesterday, the richest Americans won’t be affected by the President’s plan to push the top marginal income tax rate back to 39.6 percent. It may be a great punchline on the campaign trail, but hiking the top rate will do little to impact the richest of the rich.

"The Oracle of Omaha came on the show yesterday and promoted his plan to impose a minimum 30 percent tax on millionaires and billionaires. Warren Buffett said such a tax was necessary because fully a quarter of the 400 richest Americans (who averaged $200 million in income) paid a tax rate of less than 15 percent - and six of those super-rich individuals paid nothing at all."......................................The Oracle of Omaha made his money on the backs of the poor. He didn't build what he has. He stole it. Give it ALL back, you scumbag. Screw this 30%. We want it all.

"People or corporations making millions and not paying any tax is WRONG."..............Damn right. Let's go after Corzine. And Theresa Heinz Kerry. And the Kennedy's. And the Pelosi's. And the Reid's. And General Electric. Let's round up all the ones decrying the very policies they benefit from. They're the worst of the worst.

They are only our strongest ally and trading partner yet half the country views them with complete disdain. No wonder the rest of the world hates when Republicans get elected in America.

They do the same thing with words like: Secular, Liberal, and socialist.

They use these words like some kind of code for something that's evil. I'm not sure what these words mean to Conservatives but clearly they don't use the accepted definitions found in the dictionary. It's some sort of "newspeak" I suppose.

"People or corporations making millions and not paying any tax is WRONG."..............Damn right. Let's go after Corzine. And Theresa Heinz Kerry. And the Kennedy's. And the Pelosi's. And the Reid's. And General Electric. Let's round up all the ones decrying the very policies they benefit from. They're the worst of the worst.

What's wrong with speaking out against a policy that YOU benefit from when you believe it's wrong?

In fact doesn't that lend your argument MORE weight? When a rich person says "Don't raise my taxes!" I'm pretty sure we can all figure out why.

When a rich person advocates for their taxes to increase because he/she thinks it will help the nation, I tend to believe them. People don't usually act against their own self interests unless they are honorable or stupid.

Since they are rich, any conservative would have to agree they can't possibly be stupid because in America only the poor are stupid. That's why they are poor, right Conservatives?

AdSin15: "What's wrong with speaking out against a policy that YOU benefit from when you believe it's wrong?....................................Nothing. I honestly don't care whether the tax rate goes up or not. It is of no significance in the long run. The wealthy will remain wealthy, and the country will remain in dire fiscal and financial straits. The poor will remain poor as well, and perhaps even a bit poorer. And no, the poor aren't stupid. They just don't know how to retain and enhance their money. That's ignorance - not stupidity.

If politicians really want to make millionaires and billionaires pay at a tax rate that most of us endure on April 15th, their moral pangs would be soothed more effectively by following Buffett’s minimum tax plan or focusing on raising the tax rates on capital gains and carried interest. As Mr. Buffett told me yesterday, the richest Americans won’t be affected by the President’s plan to push the top marginal income tax rate back to 39.6 percent.

I don't have a problem with higher taxes for the rich, of which I am one. I don't have a problem with higher taxes on capital gains. I do have a problem with higher taxes on interest and dividends, since those comprise the income from many retirement accounts. My Dog, after years of working, can't people be left alone with their investments? Yes, there are some high-end coupon clippers who probably should pay more, but all in all, it's better to protect the income from nest-eggs.

I love ( actually I hate liberal thinking or lack there of ) how liberals think going after this sudden level of so call RICH will solve all our problems. Liberal thinking is always for the moment. To satisfy that emotional urge. Never thinking into the future.

Why do so many refer to this as "taxing the rich" when, in fact, it's goal is to tax small business owners?

If we are talking socialism and fairness then the small business owners need to be driven out of business so that Obama and the rest of our "fair minded" politicians can run all the businesses. After all, it's not fair that any one person is able to employ another. Only the government and union-run(government shills) companies should be allowed to employ individuals.

The argument that increased taxes on the rich will not solve the debt problem is as bogus as Joe (adulterer with a dead intern in his past). Fact, The rich do not pay taxes at a rate that the middle class does. A comprehensive plan is on the table Joe. You are too small minded to admit it. You people (republicans) must really be of low intelligence if you think people buy this nonsense.

I agree with fog that Joe is mentally ill. Bipolar,narcissistic and probably sociopathic. Joe is the problem with America. The crazies are running the asylum. Joe needs to be off the air ASAP. He is a cancer in America because he is the face of the media.

PLEASE, if you have anything to do with Joe's job at MSNBC you already have every reason to fire him. DO IT! If anyone knows how to make this happen via petition or such please let us know.